Sorbet adds gloss to Long4Life


Sorbet adds gloss to Long4Life

Published Date: 2019-05-16 | Source: Stephen Gunnion | Author: Stephen Gunnion

Sorbet adds gloss to Long4Life

The lifestyle investment group says revenue from the chain of beauty stores topped R100 million for the first time.

The weak consumer market hasn't stopped South Africans from treating themselves at beauty chain Sorbet.

Long4Life has reported a stronger second-half due to seasonality and holiday spending as demand for beauty treatments increased and consumers spent more on the beverages and goods at its sport and recreational retail stores.

The investment group has three main divisions: Sport and Recreation, including Sportsmans Warehouse, Outdoor Warehouse and Performance Brands; Beverages, including Chill Beverages and Inhle Beverages; and Personal Care and Wellness, which incorporates the Sorbet group of beauty chains and medical group ClaytonCare.

Over the year, Sports Retail grew sales by 10% and by 4% on a like-for-like basis, while sales at Outdoor Warehouse grew by 3.3% and by 4.1% on a comparable basis. Performance Brands' total external sales were 2.5% while sales to the group's retail division increased by 0.5% year on year.

Total volumes at its Beverages division increased by 19% year on year. It said grow in its own brands was particularly pleasing, with a 50% increase in volumes.

Sorbet beat expectations, with annual revenue rising 19% to reach R100 million for the first time.

While its performance over the year to-end February was indicative of the inherent potential within its various businesses, Long4 Life said comparatives aren't meaningful as these are its first full 12-month results since listing. Results for the previous financial period included trading results for four-months and incorporated finance income earned on cash balances for 11 months.

It reported revenue of R3.6 billion for the period and trading profit of R454 million. At the half-way stage in August, revenue sat at R1.53 billion and trading profit at R178 million. Headline earnings per share reached 38.7c, up from 16c in August, and it ended the period with cash of R1.1 billion. Headline earnings are used to measure profit and exclude exceptional items. The group isn't paying a dividend for the year after spending close to R160 million on share repurchases and as it retains cash for prospective investments.

Its shares rose 3.6% to R4.88 yesterday.

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